Create a loyalty program that will appeal to your customers.


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Each company would like to develop a loyalty program that would interest customers. However, as online retailers and retailers point out: “It’s easy to say, harder to develop.” Indeed, it is not so easy to engage and retain customers with the help of even the most unique loyalty bonus program.

Effective loyalty programs increase customer engagement and sales, and their value is invaluable to any brand. According to Marketing Metrics, the conversion rate of a regular customer is 60% – 70%. On average, only 8% of customers return to repeat purchases.

If you want to develop an effective loyalty program, you need to implement strategies that are not negotiable.

Loyalty program and 360-degree customer involvement

Of course, to offer points for making a purchase is very important. However, points should not be the only and final element of the loyalty program – simply ineffective.In order to really engage buyers, develop a points system with regard to various actions, for example, referrals recommendation, active participation in social accounts of a brand, email subscription , reviews, photo downloads – the list is just endless. The more opportunities you provide within the loyalty program, the more effectively you will engage and retain your audience.

Do not believe? Just take a look – Take Predator Nutrition loyalty program for customers.

Predator Nutrition, one of the leading companies in the field of sports nutrition, has developed a bonus program that includes a 360-degree involvement module. The essence of the loyalty program is to reward customers not only for making a purchase, but also for certain actions on the website or in the social accounts of the brand. Here are some examples of the Predator Nutrition loyalty program:

  • account creation – 500 points
  • recommendation – 300 points
  • birthday bonus – 100 points
  • writing reviews – 100 points
  • subscription to the newsletter – 500 points
  • become a follower on Twitter – 100 points
  • become a follower on Instagram – 200 points

The results of the loyalty program implementation exceeded all expectations of the company. As a result, Predator Nutrition received several thousand registrations in just one quarter, and program members made 1.7 times more purchases than other customers.

bonus program Predator Nutrition is one of the best loyalty programs

Multichannel features – advantages of loyalty program

Loyalty programs are characterized by multi-channel capabilities, giving customers the opportunity to choose the channel with which they want to interact. If your loyalty program is interesting for buyers, they will be tempted to participate in it.

When creating a loyalty program, provide customers with any channel or device that they prefer and use at every turn. If the channel you suggest does not match the client’s style, he will simply not pay attention to the bonus program. And also remember that your message and branding must be identical across all channels.

Guess who is the master of multi-channel use? Starbucks!

The multi-channel loyalty program that Starbucks has developed is well known. The essence of the Starbucks loyalty program is that each customer makes a purchase in the most convenient way for him. Not surprisingly, there are $ 1.2 billion on accounts (Starbucks mobile app) and club cards.

At first, a member of the Starbucks bonus program gets a free club card, and already when making the first purchase gets bonus points. The client can check the balance of the card, the number of points and orders using the phone, on the website, in a cafe or using the application. All channels interact with each other in real time, eliminating the possibility of making mistakes during communication.Omnichannel is an attractive solution, involving customers at almost every level and increasing the effectiveness of the loyalty program.

Customer loyalty programs - Starbucks examples using a mobile phone

Conquer the top

Particularly effective strategy is rewarding customers during their “journey” accompanied by your brand. Most people love to conquer peaks, and your customers will look forward to reaching the next level of the bonus program and gaining more significant privileges.

While customers are heading to the top to get the most important prize, they feel that the brand cares about them. If you use different channels and offer points for different types of actions within the loyalty program, customers will be more diverse (and happy) to interact with the brand.

Loyalty program – an example from Sephora

Sephora accompanies its customers on their journey, using the “spent dollar” scheme during each calendar year. This is a good example based on exclusivity, and the bonus program is created for involved, loyal customers who are proud of the status achieved at every stage of the journey.

Sephora’s loyalty program is complemented by game elements that also affect user behavior and increase their involvement.

The loyalty program consists of 3 levels:

  • Beauty Insider – join for free;
  • VIB (Very Important Beauty Insider) – the client reaches this level after making a purchase of $ 350 during the calendar year;
  • VIB Rouge – this level is reached for purchases in the amount of $ 1000 during a calendar year.

The client receives awards at each level, for example, free samples, recommendations for changing the image, exclusive invitations to events, and individual access to the Sephora hotline. Few customers reach the level of VIB and VIB Rouge, which makes Sephora’s loyalty program truly exclusive and effective.

loyalty program for regular customers in the store Sephora

Loyalty program effectiveness and customer information

Informing customers in real time pushes new subscribers to fill out a form or regular customers to take the next step. Provide immediate notification with a link to the loyalty program each time a customer receives (can receive) points. This approach encourages customers to participate in the program. If they are already participants in the loyalty program, such a decision plays the role of a reminder. Real-time notifications are a powerful strategy for retaining customers and increasing the effectiveness of the bonus program.

Pink Perks loyalty program from Sigma

Sigma Beauty, an international beauty concern, has created Pink Perks loyalty program to quickly create a customer base that will become active buyers with strong involvement.

The company uses in-built real-time notifications to ensure that buyers always remember the points they can get. The brand also created special birthday notices in order to please customers and offer special points. Additionally, Sigma Beauty encourages users who have made a purchase to leave a review or attract a referral. Using real-time notifications, Sigma constantly engages customers and provides updated information about the loyalty program.

Sigma Beauty bonus program example

Development of a loyalty program – summing up

Creating an effective loyalty program is not as difficult as you might expect. Simply develop a practical and appropriate program with an adapted points system that will involve users and take into account their actions that they are already doing or could be doing. Customers who actively interact with the brand become “family members”. A higher level of loyalty simply does not exist!

 


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